Alert - universal credit

In some areas, new claims for tax credits are no longer possible. Whilst most existing tax credit claimants will not be affected by UC until 2019 onwards, some changes of circumstances can lead to them needing to claim UC instead. A new in-year finalisation process will be used to finalise the tax credit claim of someone who has claimed UC along with a new method of calculating income. See our section on Universal Credit for more information.

Tax Credits: HMRC Charter

HMRC publish a range of their responsibilities in relation to tax credits in the Code of Practice 26 which is considered in detail in other parts of this website.

However, in relation to more general responsibilities these are set out in HMRC’s Your Charter. The Charter was introduced in 2009 and has statutory backing in the Finance Act 2009. Although it does not replace existing rights and remedies, it is a useful addition especially during the complaints process. The Charter was updated in 2016.

These rights may be quoted at HMRC and they expect to be held to account to them. There is statutory backing for Your Charter and HMRC have to report on their adherence to the provisions.

If HMRC do not adhere to their undertakings it can be used as the basis for a complaint and possibly compensation and a consolatory payment. See our section on Complaints.